Strategic Management and Finance: Questions and Answers

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QUESTION 4

A) What would be the two advantages of 2nd mover over the 1st mover like Lin Wei

ANSWER :

The advantages of 2nd mover is get to study and observe the customer’s reactions, the extent of product innovations, mistakes of first movers so that they would try to avoid similar problems. By doing that, the 2nd movers would able to minimize huge capitals investments. Apply to this case, the second mover the second movers can study the market feedback about Lin Wei business whether it can be success or not. If Lin Wei business and shops are receiving a lot of customers and accept a feedback from customers so there will imitation of this business.

With the observation by second movers, a more value creating product will be launched in addition to having been able to analyze market feedback on the 1st mover’s product and use it to respond successfully. In this case Lin Wei is no deterred to come out with the innovations to strengthen performance and enhance growth opportunities. It show that Lin Wei open the opportunity to other competitor or 2nd mover to create value of product so product will become improve from time to time.

QUESTION

B) As an entrepreneur do you think it is wise for Lim Wei to sell off his business and accept an executive position in private badminton association? Discuss answer with 3 reasons.

ANSWER :

It is not wise for Lin Wei to sell off his business because as an entrepreneur, Lin Wei should try to exploit the opportunities. Example apply to this case, the opportunities that Lin Wei has is he want to expand his LW business empire by acquiring Syarikat Tangkis. Syarikat Tangkis is the manufacturing company and it is the local manufacturer of badminton racquets. In addition, the price of acquisition is affordable for Lin Wei. So Lin Wei should not miss the opportunity to growth it legacy and conquer the badminton industry.

The other reason is Lin Wei has entrepreneur mindset and he like to do business. It show by Lin Wei don’t fell about uncertainty but value the market. Plus, he continuously identifies opportunities that can lead to important innovation to be value added to the products. It totally proves that Lin Wei has entrepreneur mindset and he also think as entrepreneur. It means that Lin Wei really love what he doing now.

Lin Wei in this case should not sell his business because the business has a potential to growth. It is because Lin Wei has do strategic planning where he opens three different stores which serve different product and services and plus planning to do acquisition with local manufacturer, Syarikat Tangkis where can produce badminton tennis. It mean that in the future Lin Wei will monopoly the sport industry.

QUESTION

C) Explain to Lin Wei 3 attributes of successful acquisition to hlp him determine whether his acquisition of Syarikat Tangkis would be in guarantee success

ANSWER :

i) Market

-At first Lin Wei must study about market and whether this company able to achieve their target market. Target market is important for company to achieve above average return. So Lin Wei must make sure that he know his target market and whether the industry can bring a profitable to this industry. If Lin Wei acquirer this company, will he able to monopoly this industry because from the he provided full services in term of manufacture the racquets to the sport attires. Moreover, will he be able to attract his customer and increase volume of sales of the badminton racquets. If yes it mean the acquisition is success to Lin Wei

ii) Technological Development

-Activities completed to improve a firm’s products and the process used to manufacturer it including process equipment, basic research and product design. Lin Wei should analysis first whether his company able to use this technology and able to explore the new industry. Lin Wei feel confident that his company will able to pick up and well...
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